LTH Stock Forecast & Price Target

Life Time Group Holdings is projected to achieve an EBITDA of $2.9 billion to $2.97 billion, demonstrating significant growth rates of 12.2% and 14.1% at the midpoint. The company experienced a 6% year-over-year increase in membership, with rising per-member spending contributing to 65% of revenue growth, indicating strong consumer engagement and retention. Additionally, the anticipated deployable cash nearing $400 million by 2025, combined with favorable revenue trends and improved margins, supports a robust financial outlook for the company.

Life Time Group Holdings Inc reported a year-over-year increase in center memberships to 812,062; however, this figure reflects a seasonal decline from the previous quarter's 826,502 memberships, which raises concerns about membership sustainability. The company experienced a slight improvement in its Net Debt Leverage Ratio, decreasing to 2.27x with total net debt remaining significant at $1.53 billion, indicating ongoing financial pressure despite minor debt repayment. Moreover, risks associated with expansion efforts, including potential challenges in entering new markets, maintaining competitive advantages, and increased capital expenditure, could severely impact Life Time's operational results and hinder future growth prospects.